join the purchasing knowledge revolution
DESCRIPTION
Join the PURCHASING KNOWLEDGE REVOLUTION. Prepared for CAM Canada November 22, 2004. Purchasing is a very busy job. shorter planning cycles (AKA flexible manufacturing). unreliable information (late, missing, incomplete). smaller inventories - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/1.jpg)
www.propurchaser.com
Join the Join the
PURCHASING PURCHASING KNOWLEDGEKNOWLEDGE
REVOLUTIONREVOLUTION
Prepared for CAM Canada November 22, 2004
![Page 2: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/2.jpg)
www.propurchaser.com
Purchasing is a very busy job
shorter planning cycles (AKA flexible manufacturing)
smallerinventories(less safety stock)
unreliable information(late, missing,incomplete)
fewer support people
![Page 3: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/3.jpg)
www.propurchaser.com
This is the real Job
Increase the value received for the dollars we spend
![Page 4: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/4.jpg)
www.propurchaser.com
No one can be No one can be effective at their jobeffective at their job
if they’re always fighting fires.if they’re always fighting fires.
NOT EVEN FIREMEN !
![Page 5: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/5.jpg)
www.propurchaser.com
Urgent Work vs Non-Urgent WorkUrgent Work vs Non-Urgent Work
Non-urgent work happens when:
• We improve our marketplace & technical knowledge to increase negotiating effectiveness
• We seek out value-adding alternatives: new suppliers or materials
• We team up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes
Urgent work happens when:
• Materials & services are late, short, defective, or missing
• Surprise shortages occur due to unexpected high usage
• Surprise shortages occur due to inventory reporting errors
• Suppliers’ declare force majeur
![Page 6: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/6.jpg)
www.propurchaser.com
What’s the major difference?What’s the major difference? Non-urgent work adds value!
It’s what our customers, shareholders, senior managers, stakeholders, and WE really want us to do.
‘Demonstrating profound value to the bottom-line’ means finding time for non-urgent work.
![Page 7: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/7.jpg)
www.propurchaser.com
The Joy of Escaping from the
Everything is Urgent Zone
1. Carve out time.
2. Drive down purchase costs.
![Page 8: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/8.jpg)
www.propurchaser.com
Escaping from theEVERYTHING IS URGENT Zone
Manage one of the
major time traps -
Price Hassles
![Page 9: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/9.jpg)
www.propurchaser.com
How to spend less timehaggling & hassling
Track suppliers’ input costsTrack suppliers’ input costs
- then tie what you pay - then tie what you pay to their costs.to their costs.
![Page 10: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/10.jpg)
www.propurchaser.com
LUMBER
Pallets
LINERBOARD
Corrugated Packaging
COLD ROLLED
STEEL
Stampings, Cut Sheets
As prices for commodities go up & down,
Presented by: Rod Sherkin
so too do your suppliers’ costs to produce the goods & services you buy
![Page 11: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/11.jpg)
www.propurchaser.com
The best supplierssee advantage
in linking prices to costs
They actually prefer to compete in a transparent arena
![Page 12: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/12.jpg)
www.propurchaser.com
Suppose you’ve been able to make a deal…
How do you maintain it?
Where do you find the time?
![Page 13: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/13.jpg)
www.propurchaser.com
Purchasers already need tokeep track of so many things
Packaging
Transportation
Components
Ingredients
MRO Services
Utilities
![Page 14: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/14.jpg)
www.propurchaser.com
The task of keeping tabs onThe task of keeping tabs onsuppliers’ inputs suppliers’ inputs
is daunting to say the leastis daunting to say the least
![Page 15: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/15.jpg)
www.propurchaser.com
![Page 16: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/16.jpg)
www.propurchaser.com
Enter the Internet
www.propurchaser.com
![Page 17: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/17.jpg)
www.propurchaser.com
For the first time in history
INFORMATION
can seek out
PEOPLE!
![Page 18: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/18.jpg)
www.propurchaser.com
Even better,
you can filter information
to meet your
personal requirements
A perfect tool for busy people
![Page 19: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/19.jpg)
www.propurchaser.com
This is nothing short of aPurchasing Knowledge
Revolution
![Page 20: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/20.jpg)
www.propurchaser.com
![Page 21: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/21.jpg)
www.propurchaser.com
![Page 22: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/22.jpg)
www.propurchaser.com
![Page 23: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/23.jpg)
www.propurchaser.com
13%
![Page 24: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/24.jpg)
www.propurchaser.com
-12%
![Page 25: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/25.jpg)
www.propurchaser.com
![Page 26: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/26.jpg)
www.propurchaser.com
![Page 27: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/27.jpg)
www.propurchaser.com
![Page 28: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/28.jpg)
www.propurchaser.com
![Page 29: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/29.jpg)
www.propurchaser.com
![Page 30: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/30.jpg)
www.propurchaser.com
![Page 31: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/31.jpg)
www.propurchaser.com
![Page 32: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/32.jpg)
www.propurchaser.com
![Page 33: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/33.jpg)
www.propurchaser.com
![Page 34: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/34.jpg)
www.propurchaser.com
![Page 35: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/35.jpg)
www.propurchaser.com
![Page 36: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/36.jpg)
www.propurchaser.com
![Page 37: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/37.jpg)
www.propurchaser.com
• Increases negotiating leverage
• Widens span of price control
• Delivers cost transparency
There are more good reasons to use this approach…
Advantages of using the InternetAdvantages of using the Internetto track your suppliers’ inputsto track your suppliers’ inputs
![Page 38: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/38.jpg)
www.propurchaser.com
Five More Good Reasonsfor tracking suppliers’ inputs
1.1. Attract low-cost producersAttract low-cost producers
2.2. Strengthen the supply-chainStrengthen the supply-chain
3.3. Reduce suspicion and acrimonyReduce suspicion and acrimony
4.4. Benefit sellers as well as PurchasersBenefit sellers as well as Purchasers
5.5. Enable automatic price reductionsEnable automatic price reductions
![Page 39: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/39.jpg)
But best of allBut best of all
It frees up Purchasers’
precious time.
![Page 40: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/40.jpg)
www.propurchaser.com
What can Purchasers do What can Purchasers do with their new-found time?with their new-found time?
![Page 41: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/41.jpg)
www.propurchaser.com
Devote more time to value-adding work…
Improving marketplace & technical knowledge to increase negotiating effectiveness
Seeking out value-adding alternatives: new suppliers or materials
Teaming up with Engineering, R&D, Production, & Suppliers to optimize materials, specifications & processes
![Page 42: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/42.jpg)
www.propurchaser.com
What Larry BossidyWhat Larry Bossidyof Allied Signalof Allied Signal
says about Purchasing…says about Purchasing…
This thoroughfare to savings This thoroughfare to savings is broad and fast -- is broad and fast -- yet so unsexy that yet so unsexy that
even seasoned managers pass it by.even seasoned managers pass it by.
![Page 43: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/43.jpg)
www.propurchaser.com
What William Marx,What William Marx,Executive VP of Executive VP of
AT&T’s Telephone Products,AT&T’s Telephone Products,says...says...
Purchasing is by far thePurchasing is by far thelargest single functionlargest single function
at AT&T.at AT&T.Nothing we do Nothing we do
is more important.is more important.
![Page 44: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/44.jpg)
www.propurchaser.com
Opportunity KnocksOpportunity Knocks
OPEN THE DOOR!
The Internet is powering a Knowledge Revolution which
Purchasers (busy as they are) can exploit to drive down costs, and make a profound difference to the bottom-line.
![Page 45: Join the PURCHASING KNOWLEDGE REVOLUTION](https://reader036.vdocument.in/reader036/viewer/2022062304/568142cc550346895daf1e8d/html5/thumbnails/45.jpg)
www.propurchaser.com
To Obtain Your Free MembershipTo Obtain Your Free Membership
www.propurchaser.com/CAM/
Click ‘Free Trial’; complete the form (90 seconds).